As per the agreement, Merck receives worldwide rights to develop and commercialize biotherapeutic drug conjugates aimed at a number of pre-specified targets while Ambrx will earn $15m upfront payment.
Ambrx scientific founder and board member Peter Schultz said the company’s technology has the potential to provide the foundation for a new family of biologic drug conjugates that selectively deliver small molecules to their site of action.
"Merck’s deep disease area expertise made it the partner of choice in expanding the application of this technology beyond oncology to other important disease areas," Schultz added.
Ambrx is also entitled to receive milestone payments totalling up to $288m with the discovery, development and commercialization of candidates.
Additionally, Ambrx will obtain royalties on any net sales of products resulting from the collaboration.
Merck biologics and vaccines research head and senior vice president Richard Murray said, "This agreement will allow us to combine Ambrx’s expertise in site-specific protein conjugation chemistry with Merck’s expanding antibody capabilities and extensive small molecule resources.